EU Slaps Apple and Meta with First DMA Fines But Holds Back to Avoid Trade War

The European Union is set to impose its first fines under the Digital Markets Act (DMA) this week, targeting Apple and Meta for alleged anti-competitive practices. While the penalties mark a milestone in EU tech regulation, they also reveal Brussels’ delicate balancing act: enforcing its landmark digital rules while avoiding a full-blown trade war with the U.S. under former President Donald Trump’s tariff threats.

What's the Matter?

The EU’s primary grievance centers on Apple’s App Store policies, which allegedly prevent developers from informing users about cheaper payment options outside Apple’s ecosystem. This echoes a 2023 €1.8 billion antitrust fine over music-streaming app restrictions. A second probe into Apple’s browser default settings, however, will reportedly be closed after the company tweaked its iOS browser choice screen to comply with EU demands.

Meta faces penalties for its ad-free subscription model on Instagram and Facebook, which regulators argue coerces users into surrendering personal data for targeted ads. The EU claims this violates DMA safeguards on data consent.

Why the Fines Are Smaller Than Expected

Under the DMA, fines can reach 10% of global revenue (potentially billions for Apple and Meta). Yet insiders reveal the penalties will be “modest” compared to past antitrust cases.

With Trump threatening retaliatory tariffs on April 2 including targeting the DMA as a “non-tariff barrier”—the EU is treading lightly. One Brussels researcher noted the fines are “as minimal as possible to avoid annoying Trump.” The Commission aims to prioritize behavioral changes over punitive measures, given the DMA’s novelty and potential legal challenges.

The U.S.-EU Trade Tensions

Trump has framed EU tech fines as “overseas extortion” and “taxation” of American companies, vowing to protect U.S. firms from “anti-American regulations.” The EU, meanwhile, insists its enforcement aligns with shared concerns about Big Tech’s dominance.

But behind closed doors, officials admit fears of escalating tariffs like Trump’s recent 25% levy on EU automobiles have influenced the DMA’s rollout timing and messaging.

While Apple and Meta dodge maximum fines this time, the DMA’s recurring penalty mechanism looms. Apple, for instance, could face 5% daily turnover fines if it fails to comply long-term. For Meta, the “pay or consent” model may need a redesign to offer free, privacy-friendly alternatives.

Yet the bigger question remains: Can the EU uphold its regulatory ambitions without triggering a transatlantic trade rupture? As one industry insider warned, “Further targeting U.S. tech firms will heighten tensions and provoke retaliation.”

Read the original Politico.eu article here: EU set to fine Apple and Meta amid escalating trade war